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Army Benefits Center-Civilian
1
Updated 03/29/2011
America’s Army: The Strength of the Nation
ABC-C MISSION: We are a top performing, caring team of Civilian Human Resource professionals providing quality benefits and entitlements services to our customers through a centralized automated center.
ABC-C SERVICES: Provide advisory services and processes transactions for:
Federal Employees Health Benefits (FEHB) Federal Employees’ Group Life Insurance (FEGLI) Thrift Savings Plan (TSP) Retirement (FERS & CSRS) Survivorship (Death Claim Processing)
2
INTRODUCTION
America’s Army: The Strength of the Nation
3
ABC-C AUTOMATED SYSTEMS
EBIS – Web Based
• Customer-friendly• Available 24 hours a day• Secure site• Ability to read at convenience• Ability to print screens of information• Can process benefits transaction without
counselor assistance• Ability to print benefit forms• Estimate calculators• ABC-C website: https://www.abc.army.mil
America’s Army: The Strength of the Nation
Can connect with a counselor if needed Available to those without computer access Requires use of SSN and PIN only Can process benefit transactions without counselor assistance Can receive faxed back copies of documents (FEHB
enrollment form) Counselors are available 12 hours a day Automated systems available 24 hours a day ABC-C toll-free telephone number is 1-877-276-9287
(TDD for the hearing impaired is 1-877-276-9833)
4
ABC-C AUTOMATED SYSTEMSIVRS - Telephone
America’s Army: The Strength of the Nation
5
1-30 April 2011
312 Total CallsAverage Answer Time: 36 Seconds
Average Call Length: 12 Minutes 13 Seconds Average Wrap-Up Time: 2 Minutes 11 Seconds
ABC-C Benefits Counselors are available from 6:00 a.m. to 6:00 p.m. CT
Monday - Friday
Peak Call Times are between 8:00 a.m. and 2:00 p.m.
COUNSELOR ASSISTED CALLS
America’s Army: The Strength of the Nation
Benefits Transaction SummaryApril 2011
TSP
FEHB
FEGLI
TSPC
10144 368
Transaction Source:
EBIS (Web) – 530
IVRS (Phone) – 0
Counselor Assisted – 28
Total Transactions = 558
3
36
Non-Disability Retirements TimelinessApril 2011
1056%
Ret. Rcvd 31-60 Days: 8Ret. Rcvd More Than 60 Days: 4
3464%
Met Did Not Meet
1936%
Goal: Complete retirement NLT 5 working days prior to DOR. This chart reflects timeliness for those retirements with EFFECTIVE dates of 1-30 April 2011.
Ret. Rcvd 16-30 Days: 14
14 100%
Ret. Rcvd 1-15 Days: 18
4100%
Total: 53
8 100%
Ret. Rcvd on/after : 9
9 100%
4
844%
Monthly Timeliness ReportApril 2011
Nu
mb
er
of
Da
ys
0123456789
Benefit Type: Death Actions Disability Retirements Ret. Estimates
35
61
9
2
4
5
2
9
CONTINUING CHALLENGES
America’s Army: The Strength of the Nation
• Last minute VERA/VSIP approvals
• Short notice retirement applications
• Federal Erroneous Retirement Coverage Corrections Act (FERCCA)
• Aging workforce
• Base Realignment and Closure (BRAC)
Customer Wait Time to Speak with a Counselor
Site Assistance Visits Video Tele-Training (VTTs) Defense Connect Online (DCO) Reduction in scripts before accessing a
counselor Interactive Customer Evaluation (ICE)
feedback ABC-C/Social Security Partnership OPM Audit and Age of Separation Report
10
SUCCESS STORIES
America’s Army: The Strength of the Nation
HR Link (electronic estimates)
Growing serviced population
eOPF – Electronic Official Personnel Folder
Access for Separated National Guard Employees
11
ON THE HORIZON
America’s Army: The Strength of the Nation
12
ANY QUESTIONS?
America’s Army: The Strength of the Nation
13
RETIREMENT PLANNING
FEHB
America’s Army: The Strength of the Nation
DEPOSITREDEPOSITPOST-56
CSRSCSRS OFFSET
FERS
FEGLIFEHBFEDVIPLTCIFSA
TSP
Early Career – 25 + years to retirement• Enroll in TSP• Enroll in benefits (FEHB, FEGLI, FEDVIP, FSA)• Pay civilian deposit• Pay military deposit
Mid Career – 10 - 24 years to retirement• Adjust benefits based on life situation• Review level of TSP participation & allocation
between the funds
14
RETIREMENT PLANNING
America’s Army: The Strength of the Nation
Late Career: • Less than 10 years prior to retirement:
Use calculators in EBIS to get a rough estimate of annuity Determine income needed in retirement using the Federal
Ballpark E$timate calculator Adjust TSP contributions & other savings based on results
from calculators• Five years to retirement:
Verify eligibility to continue FEHB & FEGLI into retirement Request a retirement estimate Maximize TSP contributions & other savings
15
RETIREMENT PLANNING
America’s Army: The Strength of the Nation
Federal Ballpark E$timate:https://www.opm.gov/retire/tools/calculators/ballpark/menu.asp
Retirement information & services provided by OPM:http://www.opm.gov/retire
U.S. Financial Literacy Education Commission website:http://www.mymoney.gov
Army Benefits Center–Civilian EBIS:https://www.abc.army.mil
16
RETIREMENT PLANNING LINKS
America’s Army: The Strength of the Nation
New employees first hired in covered position on/after 01-01-1987
Contribute 0.8% of salary to FERS Contribute to Social Security Can contribute up to IRS limit to TSP, receive agency
matching of 5% if you contribute at least 5% of your salary• Automatic 1% contribution regardless of your TSP
contribution rate• First 3% of your contributions are matched dollar-
for-dollar• Next 2% will be matched at 50 cents on the dollar
17
FERS
America’s Army: The Strength of the Nation
Employees first hired on/after 01-01-1984 & certain rehires
Reduced CSRS contribution rate of 1.3% Contribute to Social Security On 01-01-1987, employees with CSRS Interim
coverage changed to:• CSRS Offset if you had at least 5 years of civilian
service• FERS if you had less than 5 years of civilian
service
18
CSRS INTERIM
America’s Army: The Strength of the Nation
If you have civilian service prior to your election of FERS, and
The service was subject to CSRS retirement deductions, or Social Security deductions, but not both, and
The total of these 2 types of service is 5 or more years, then
This period of service is called a CSRS component, and that portion of your retirement annuity, or civilian deposit, etc. will be calculated using CSRS rules
(If you have less than 5 years, the service is creditable under FERS rules)
19
CSRS COMPONENT
America’s Army: The Strength of the Nation
FERS is a 3-tiered retirement systemFERS annuity is the smallest component
TSP WILL make up the largest portion of your total retirement
20
FERS
FERS Annuity
Social Security
Thrift Savings Plan
America’s Army: The Strength of the Nation
Used to determine retirement eligibility and to calculate retirement annuity
May not be the same as your Leave SCD (SCD that appears on your SF 50 & LES)
Not all service that is creditable for leave is creditable for retirement
21
RETIREMENT SERVICE COMPUTATION DATE (RSCD)
America’s Army: The Strength of the Nation
Examples of service that is creditable for leave but not for retirement:
• Non-Appropriated Fund (NAF) service on a temporary appointment
• For retired military, campaign or combat service if retired military pay is not being waived
• Military service when the military deposit has not been paid
• Service on a temporary appointment performed on or after 01-01-1989
22
RETIREMENT SERVICE COMPUTATION DATE (RSCD)
America’s Army: The Strength of the Nation
23
CIVILIAN SERVICEDEPOSIT/REFUND
America’s Army: The Strength of the Nation
24
WHAT IS DEPOSIT SERVICE
Any period of potentially creditable service during which retirement deductions are not withheld:• Generally, non-career time such as temporary or
indefinite service• Also known as non-deduction service
Service that is now considered Federal employment, due to a change in the law that allows credit for retirement annuity computation purposes (Peace Corps, VISTA)
Amount of deposit:• 1.3% of earnings + interest (3% of stipend for Peace
Corps and VISTA)• Interest will vary by the date the service was performed• FERS with CSRS component, CSRS rules apply• FERS with no CSRS component, FERS rules apply
America’s Army: The Strength of the Nation
25
DEPOSIT SERVICE
Non-Deduction Service prior to 01-01-1989
Deposit Not MadeDeposit Made
Credit for eligibility (RSCD) and Annuity
Computation
No credit for eligibility (RSCD) and Annuity
Computation
America’s Army: The Strength of the Nation
26
DEPOSIT SERVICE
Non-Deduction Service on or after 01-01-1989
DEPOSIT NOT ALLOWED
No credit for Eligibility or Annuity Computation
America’s Army: The Strength of the Nation
27
WHAT IS REDEPOSIT SERVICE?
A sum of money paid into the Fund by an employee or survivor to cover a period of service during which deductions were withheld but later refunded under CSRS or FERS provisions
• Redeposit = Amount of refund plus interest (Interest accrues from date of refund check)
Note: Redeposit may be made before or after retirement.
America’s Army: The Strength of the Nation
REDEPOSIT SERVICE
28
Contributions Refundedand Retirement is not a Disability Retirementor Death In Service
RedepositNOT Made
Credit for Eligibility NO credit for
AnnuityComputation
Redeposit Made
Credit for Eligibility and
AnnuityComputation
America’s Army: The Strength of the Nation
29
INTEREST RATESYEAR RATE YEAR RATE YEAR RATE
2011 2.75% 2001 6.375% 1991 8.625%
2010 3.125% 2000 5.875% 1990 8.75%
2009 3.875% 1999 5.75% 1989 9.125%
2008 4.75% 1998 6.75% 1988 9.125%
2007 4.875% 1997 6.875% 1987 8.375%
2006 4.125% 1996 6.875% 1986 9%
2005 4.375% 1995 7% 1985 11.125%
2004 3.875% 1994 6.25% 1984 13%
2003 5% 1993 7.125% 1948 - 1984
3%
2002 5.5% 1992 8.125% Before 1948
4%
America’s Army: The Strength of the Nation
Complete front page of SF 3108, Application to Make Service Credit Payment (FERS) and send to the ABC-C.
ABC-C will calculate an estimated deposit/redeposit amount and mail to OPM.
OPM will notify you of final deposit/redeposit amount and payment procedures.
OPM will send you a receipt and new balance each time payment is made.
Ensure “Payment in Full” notice is filed in OPF.
30
HOW TO PAY A CIVILIANDEPOSIT OR REDEPOSIT
America’s Army: The Strength of the Nation
PAID IN FULL
31
MILITARY DEPOSIT
America’s Army: The Strength of the Nation
32
PRE 01-01-1957 MILITARY SERVICE
No deposit required for creditable military service performed prior to 01-01-1957
America’s Army: The Strength of the Nation
33
IN RECEIPT OF MILITARY RETIRED PAY
Based on Non – Combat Disability or
Length of Service
No Credit unless Military Retired Pay is waived & deposit
is paid
Based on Combat Disability or Chapter
1223, Title 10 (Reserves)
CREDIT FOR POST-56 MILITARY SERVICE
Must Pay to receive credit for Eligibility (RSCD) & Annuity
Computation
America’s Army: The Strength of the Nation
34
Military Service on/after 01-01-1957
POST-56 MILITARY SERVICE
Amount of Deposit:
3% of basic pay earned + interest (2 years interest free)
(Interest will vary)
Must Pay to receive credit for Eligibility (RSCD) & Annuity Computation
America’s Army: The Strength of the Nation
35
USERRA SERVICE
Title 10/Title 32 Service That Interrupts Civilian Service
Deposit Not MadeDeposit Made
Credit for eligibility (RSCD) and Annuity
Computation
No credit for eligibility (RSCD) and Annuity
Computation
America’s Army: The Strength of the Nation
Amount of Deposit:
Lesser of the two:
3% of basic pay earned + interest (2 years interest free) or what your FERS contributions would have been for the civilian service if you had not entered into the military + interest
(2 years interest free) (Interest will vary)
Complete Form RI 20-97, Estimated Earnings During Military Service, and send to the appropriate branch of service (addresses are on the ABC-C website). Include copies of all of your DD 214s.
Upon receipt of estimated earnings, include your DD 214, SF 3108 page 1 and SF 3108A and forward to the ABC-C. The ABC-C will calculate an estimate of the deposit owed and forward to DFAS.
DFAS will finalize the amount owed and advise you of payment options. Payments are made directly to DFAS-Cleveland.
Ensure “Payment In Full” notice is filed in OPF.
36
HOW TO PAY AMILITARY DEPOSIT
America’s Army: The Strength of the Nation
PAID IN FULL
37
RETIREMENT REQUIREMENTS
America’s Army: The Strength of the Nation
38
TYPES OF RETIREMENT
Optional retirement Voluntary Early Retirement Authority (VERA) Discontinued Service Retirement (DSR) Military Reserve Technician (MRT) Deferred retirement Disability retirement Death-in-service
America’s Army: The Strength of the Nation
Have at least 5 years of creditable civilian service with the Federal government
Meet Minimum Retirement Age (MRA)
Must separate from a position subject to FERS coverage
39
GENERAL ELIGIBILITY REQUIREMENTS
America’s Army: The Strength of the Nation
Minimum Retirement Age (MRA) with 30 years service
60 years of age with 20 years service 62 years of age with 5 years service
MRA with at least 10 years but not more than 30 years service:• 5% reduction for each year under age 62
(permanent reduction)• NOT entitled to an annuity supplement
Best day to retire: Last day of the month!
40
OPTIONAL RETIREMENT
America’s Army: The Strength of the Nation
41
MINIMUM RETIREMENT AGEIF YEAR OF THE MINIMUMBIRTH IS... RETIREMENT AGE IS...
BEFORE 1948 551948 55 & 2 MONTHS1949 55 & 4 MONTHS1950 55 & 6 MONTHS1951 55 & 8 MONTHS1952 55 & 10 MONTHS1953-1964 561965 56 & 2 MONTHS1966 56 & 4 MONTHS1967 56 & 6 MONTHS1968 56 & 8 MONTHS1969 56 & 10 MONTHS1970 & AFTER 57
NOTE: SINCE EMPLOYEES BORN IN 1948 DID NOT REACH AGE 55UNTIL 2003, THE MRA UNTIL THAT DATE IS 55
America’s Army: The Strength of the Nation
Age 50 with at least 20 or more years of service* Any age with at least 25 years of service* Agency/Installation must approve No age reduction under FERS for early retirement
• If you have a CSRS component, CSRS portion of annuity will be reduced 2% each full year under age 55
You will receive an annuity supplement if:• You retire at or after your MRA• If not, you will receive it once you reach your MRA
* Must include 5 years of creditable civilian service
42
VOLUNTARY EARLYRETIREMENT AUTHORITY (VERA)
America’s Army: The Strength of the Nation
Age 50 with at least 20 or more years of service* Any age with at least 25 years of service* Must receive a specific written notice of a proposed
involuntary separation from your Agency/Installation No age reduction under FERS for early retirement
• If you have a CSRS component, CSRS portion of annuity will be reduced 2% each full year under age 55
Annuity starts day after separation You will receive an annuity supplement if:
• You retire at or after your MRA• If not, you will receive it once you reach your MRA
NOT eligible for VSIP or severance pay
* Must include 5 years of creditable civilian service
43
DISCONTINUED SERVICERETIREMENT (DSR)
America’s Army: The Strength of the Nation
Unique to FERS
Involuntary separation is based on loss of military membership only (not for cause).
Eligibility to receive the FERS annuity supplement is immediate even if not at MRA.
Age and service requirements are based on date of hire as follows:
44
Military Reserve Technician (MRT)
America’s Army: The Strength of the Nation
• First hired before 10 February 1996 - Age 50 with 25 years of creditable “federal”
service. - Prior Title 10 active duty and/or temporary
service performed prior to 1/1/1989 for which the employee completed a service deposit can be used to achieve the 25 years of creditable “federal” service
• First hired on or after 10 February 1996 - Age 50 with 20 years of creditable “military
technician” service, or Any age with 25 years of creditable “military technician” service.- Other service creditable under FERS as well as
prior Title 10 military service deposits cannot be used to achieve the minimum “military technician” years of service.
45
Military Reserve Technician (MRT)
America’s Army: The Strength of the Nation
46
POSTPONING RETIREMENT BENEFITS
MINIMUM RETIREMENT AGE (MRA + 10)
• Separating employees can reduce or eliminate the 5% age reduction by postponing the commencing date of their MRA + 10 annuities.
• FEHB and FEGLI coverage may be reinstated prospectively if at time of separation the employee was eligible to continue coverage into retirement.
• Sick leave is creditable in the computation of the CSRS component, if applicable.
America’s Army: The Strength of the Nation
47
DEFERRED RETIREMENT If you leave Federal service before meeting age and service requirements
to retire:• You may receive a deferred annuity at age 62 with at least 5 years of
creditable service or at the Minimum Retirement Age (MRA) with at least 10 years of creditable service (5% age reduction) IF: You are not eligible for an immediate annuity within 1 month of
separation; and You meet the minimum 5 years of creditable civilian service
requirement at the time of separation; and You do not take a refund of retirement deductions after separating
from Federal service FEHB and FEGLI will not be reinstated at the time your annuity
commences. Your application for retirement is sent directly to OPM.
NOTE: FERS annuity supplement is NOT payable.
America’s Army: The Strength of the Nation
SF 3107, Application for Immediate Retirement SF 3107, Schedule A (Military Service Information), Schedule B
(Military Retiree Pay), Schedule C (Federal Employees Compensation Information)
SF 3107-2, Spouse’s Consent to Survivor Election SF 2818, Continuation of Life Insurance Coverage W-4P, Withholding Certification for Pension or Annuity Payment State Tax Forms, if applicable RI 79-9 - Health Benefits Cancellation/Suspension Confirmation DD 214, Report of Separation from Active Duty (or equivalent) OPM 1514, Military Deposit Worksheet OPM 1515, Military Service Deposit Election Written notice of proposed involuntary separation (DSR) https://www.abc.army.mil/Forms/RetirementForms.htm
** For Deferred & Postponed retirement forms, contact OPM
48
RETIREMENT FORMS
America’s Army: The Strength of the Nation
49
FERS ANNUITY SUPPLEMENT• An estimated amount of Social Security benefits earned during FERS service • Benefit paid until age 62 to certain FERS employees who retire before age 62 and are entitled to an immediate annuity• Eligibility:
• Has at least 1 calendar year of FERS service AND
• Retires with an immediate annuity
• At or after MRA with 30 years• At age 60 with 20 years of service• At or after MRA under Early/DSR
retirement provisions • Under Special Provisions
(i.e., MRT, FF, LEO, etc.)
• Individuals NOT eligible for annuity supplement:
• Disability Retiree• MRA +10 provision• Deferred Annuity• Retiring at age 62 or older• CSRS Employees
•Duration of annuity supplement:• Payable through the earlier of the following dates:
• Last day of the month you become age 62 OR;
• Last day of the month before the first month you are entitled to Social Security
benefits.
America’s Army: The Strength of the Nation
Supplement is tested for earnings above the Social Security exempt amount ($14,160 for 2011)
• Earnings include wages and self-employment income
• Income from severance pay (including VSIP), pensions, savings and investments are NOT subject to the earnings test.
• Annuity supplement will be offset by $1 for every $2 over this amount that is earned in 2011
50
FERS ANNUITY SUPPLEMENT
America’s Army: The Strength of the Nation
For individuals covered by FERS:• Credit for 50% of sick leave (pending guidance
from the Office of Personnel Management (OPM))• Credit for 100% in 2014
For individuals who have transferred to FERS with a CSRS component, the amount of sick leave credited is pending guidance from OPM
51
UNUSED SICK LEAVE
America’s Army: The Strength of the Nation
5252
America’s Army: The Strength of the Nation
53
EXAMPLE: COMPUTING TOTALSERVICE WITH UNUSED SICK LEAVE
AGE
2010-12-31 (DOR)
- 1950-12-05 (DOB)
60-00-26
Unused Sick Leave
1136 hours =
(50% of 2272 hours)
TOTAL SERVICE
2010-12-31 (DOR)
- 1978-03-12 (Ret-SCD)
32-09-19
= 33-04-05
+ 00-06-16
32-15-35
America’s Army: The Strength of the Nation
Weighted average of highest 3 years of basic pay (including locality pay/local market supplement)
Must be 3 consecutive years
Is usually the last 3 years
Is the highest salary, not the highest grade
Normally, the beginning date of the 3 year period is determined by subtracting 3 years from the date of retirement
54
HIGH - 3 AVERAGE SALARY
America’s Army: The Strength of the Nation
55
ANNUITY COMPUTATION
FORMULA FOR COMPUTING ANNUITY FOR VOLUNTARY RETIREMENT:
• High-3 avg salary X 1.1% X years and months of service if you are age 62 with 20+ years of service
• High-3 avg salary X 1.0% X years and months of service
America’s Army: The Strength of the Nation
56
• Age Reduction (MRA+10)
• Deposit Service for CSRS component
• Election of Survivor Benefits
• Redeposit Service for CSRS component
REDUCTIONS
• Health Benefits
• Life Insurance
• Federal Income Taxes
• FEDVIP
• LTCI
• State Tax (If Applicable)
DEDUCTIONS
America’s Army: The Strength of the Nation
57
SURVIVOR ELECTION OPTIONS
CURRENT Spouse Survivor Annuity ---Full (50% of your annuity)
CURRENT Spouse Survivor Annuity ---Partial (25% of your annuity)
Self Only Annuity (No survivor benefit)
FORMER Spouse Survivor Annuity ---Full (50% of your annuity)
FORMER Spouse Survivor Annuity ---Partial (25% of your annuity)
Combination Current / Former Spouse Survivor Annuity
Insurable Interest Survivor Annuity
America’s Army: The Strength of the Nation
58
SURVIVOR BENEFITCOST / REDUCTION
• Full/Max (50%) = 10% of annuity• Partial (25%) = 5% of annuity Example: Maximum (50%) elected Basic Annuity = $12,000 $12,000 x 10% = - 1,200 yearly cost After Reduction = $10,800 yearly annuity
Survivor will receive 50% of annuity = $6,000
Example: Partial (25%) elected Basic Annuity = $12,000 $12,000 x 05% = - 600 yearly cost After Reduction = $11,400 yearly annuity
Survivor will receive 25% of annuity = $3,000
America’s Army: The Strength of the Nation
The survivor benefit is payable for life unless the survivor remarries before age 55.
Benefits will be restored if the remarriage terminates in death, annulment or divorce.
59
SURVIVOR BENEFIT PAYMENTS
America’s Army: The Strength of the Nation
Disability – Unable to render useful & efficient service because of disease or injury
Must be in a position covered by FERS
Minimum of 18 months creditable civilian service
Disability annuity IS subject to Federal tax
60
DISABILITY RETIREMENT
America’s Army: The Strength of the Nation
DISABILITY RETIREMENTANNUITY AMOUNT
FIRST 12 MONTHS
AFTER 12 MONTHS
60% x high 3 average salary
40% x high 3 average salary
minus minus
100% of Social Security
Benefits
60% of Social Security
Benefits
61
IF UNDER AGE 62 AT SEPARATION:
America’s Army: The Strength of the Nation
Disability annuity is recomputed at age 62 to an amount that represents the annuity you would have received if you had continued working until the day before your 62nd birthday and then retired under non-disability provisions.
If 62 or older or eligible for Optional Retirement, you receive an "earned annuity" based on the general FERS computation formula if you:
• Are 62 years old or older; OR• Meet the age and service requirements for regular,
unreduced immediate retirement (MRA with 30 years, age 60 with 20 years, or age 62 with 5 years)
62
DISABILITY ANNUITY AMOUNT
America’s Army: The Strength of the Nation
A NG technician may be eligible if he/she - Is involuntarily separated due to medical reason - Is not found by OPM as meeting criteria for a
“regular” disability retirement. - Is not appointed to another Federal position
- Has not declined a reasonable job offer.
63
Special NG Disability Retirement Provision (P.L. 97-253)
America’s Army: The Strength of the Nation
**IMPORTANT NOTE for the FERS NG technician regarding the special provisions of PL 97-253
If the technician is also eligible for a Military Reserve Technician (MRT) retirement and OPM disapproves the disability application under FERS “regular” provisions, then the technician is NOT eligible for a disability retirement under the special provisions of PL 97-253.
64
Special NG Disability Retirement Provision (P.L. 97-253)
America’s Army: The Strength of the Nation
30-Day Notice Requirement HRO issues 30-day notice of separation from the
technician program upon receipt of the discharge orders. The following should be included in the 30-day notice: ◦ A statement that separation will occur in 30 days or
upon receipt of adjudication for regular disability retirement, whichever is later.
◦ That the technician can remain on board in a duty, annual, sick (if appropriate), or leave without pay status until the initial decision is made by OPM.
◦ That separation will be no later than the end of the pay period in which OPM’s decision regarding “regular” disability is received by HRO.
65
Special NG Disability Retirement Provision (P.L 97-253)
America’s Army: The Strength of the Nation
Waiver of Reconsideration and Appeal Rights• Technician should sign a waiver statement
indicating that he/she wants to be considered for benefits under the special disability provisions of PL 97-253.
• If OPM determines that the NG technician is not eligible for disability retirement under “regular” provisions, provided the required 30-day notice had be given, the technician must be separated.
66
Special NG Disability Retirement Provision (P.L. 97-253)
America’s Army: The Strength of the Nation
Waiver ExampleI am applying for a “regular disability
retirement” under the provisions of [5 USC 8337 (if CSRS) or 5 USC 8451 (if FERS)] due to my loss of military membership with the (state) Air/Army National Guard for medical reasons.
I understand the issuance and facts for considering approval for regular disability and hereby waive my rights for further reconsideration and appeals to the Office of Personnel Management (OPM) and the Merit Systems Protection Board (MSPB) should the application for regular disability be disapproved by OPM.
In addition, should the application for regular disability be disapproved, I hereby apply for benefits under the special disability retirement provisions of Public Law 97-253.
67
Special NG Disability Retirement Provision (P.L 97-253)
America’s Army: The Strength of the Nation
Not eligible for FERS annuity supplement Required to apply for Social Security benefits Submit all forms for regular retirement
PLUS: SF 3112A – Applicant’s Statement of Disability SF 3112B – Supervisor’s Statement SF 3112C – Physician’s Statement SF 3112D – Agency Certification of Reassignment
and Accommodation Efforts FedMER Eligibility Statement Waiver- P.L. 97-253
68
DISABILITY RETIREMENT
America’s Army: The Strength of the Nation
If you die while still an active employee, your survivor MAY be entitled to death benefits
In the event of your death, your supervisor needs to contact your servicing Human Resources (HR) representative
HR will contact ABC-C An ABC-C counselor will contact the survivor within
24 hours
69
DEATH-IN-SERVICE
America’s Army: The Strength of the Nation
Spousal Benefits: Monthly annuity (survivor benefits) payable if married to employee at least 9 months, and the employee has 10 years of FERS service
EXCEPTIONS to the 9 months of marriage
requirement: Spouse is the parent of a child of the marriage, or Death was accidental
70
DEATH-IN-SERVICE
America’s Army: The Strength of the Nation
Children’s Benefit(s) are payable if:
• The child is unmarried AND under 18, or• Under age 22 if full-time student, or• Any age and disabled before 18• Children’s Benefit is the same if death-in- service
or death as an annuitant
71
DEATH BENEFITS
America’s Army: The Strength of the Nation
72
DEATH BENEFIT Up to 3 children if a parent is living
• 2011 rate is $469 per month per child• More than 3 children, $1409 divided by # of
children Up to 3 children if no living parent
• 2011 rate is $563 per month per child• More than 3 children, $1691 divided by # of
children Amount reduced by Social Security benefits
America’s Army: The Strength of the Nation
COST OF LIVING ADJUSTMENTS(COLA)
Increase in CPI
Amount of COLA
Up to 2% Full CPI
2% - 3% 2%
3% or more
CPI – 1%
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• Annual rate based on rise in Consumer Price Index (CPI)
• Effective 1 Dec each year• Payable in Jan (1/12 of COLA for each month)• Must be 62 or older to receive • Disability annuitants and
survivors receive COLA at any age
• There is no COLA for 2011
America’s Army: The Strength of the Nation
If you didn't pay Social Security taxes on your government earnings and you are eligible for Social Security benefits, the formula used to figure your benefit amount may be modified, giving you a lower Social Security benefit.
WEP affects Social Security benefits when any part of your Federal service after 1956 is covered under the Civil Service Retirement System (CSRS). However, Federal service where Social Security taxes are withheld (Federal Employees Retirement System or CSRS Offset) will not reduce your Social Security benefit amounts.
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WINDFALL ELIMINATION PROVISION (WEP)
America’s Army: The Strength of the Nation
WEP does not apply to survivors benefits. It also does not apply if: • You are a Federal worker first hired after December
31, 1983; • You were employed on December 31, 1983, by a
nonprofit organization that did not withhold Social Security taxes from your pay at first, but then began withholding Social Security taxes from your pay;
• Your only pension is based on railroad employment;
• The only work you did where you did not pay Social Security taxes was before 1957; or
• You have 30 or more years of substantial earnings under Social Security.
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WINDFALL ELIMINATION PROVISION (WEP)
America’s Army: The Strength of the Nation
If you receive a pension from a Federal, state or local government based on work where you did not pay Social Security taxes, your Social Security spouse’s or widow’s or widower’s benefits may be reduced. You are exempt from the GPO if you were contributing to Social Security for your last 5 years of federal employment.
Your Social Security benefits will be reduced by 2/3s of your government pension. • Monthly civil service pension - $1,200• 2/3s offset to Social Security - $ 800* • Spouse or survivor benefit - $1,000• Final amount due - $ 200
($1,200 – $800* = $200)
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GOVERNMENT PENSION OFFSET (GPO)
http://www.socialsecurity.gov/gpo-wep/http://www.socialsecurity.gov/gpo-wep/
America’s Army: The Strength of the Nation
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NON-APPROPRIATED FUND (NAF) RETIREMENT PROCESSING
NAF Retirement System - Contact nearest NAF office
FERS Retirement Plan - Contact the ABC-C
America’s Army: The Strength of the Nation
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FEHB IN RETIREMENT
Self Only Self & Family
Additional Information: http://www.opm.gov/insure/health
OPM Tel: 1-888-767-6738Civilian Soldiers Supporting America’s Soldiers
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FEHB IN RETIREMENT
• Coverage as a family member under FEHB or CHAMPUS/TRICARE counts towards 5 year requirement (employee must be enrolled in FEHB prior to retirement)
• Covered for the 5 years of service prior to retirement or since your FIRST opportunity to enroll
(special rules for VERA and DSR, see next slide)
• Be insured on the date of retirement
• Retire on an immediate annuity
CONTINUATION INTO RETIREMENT:
America’s Army: The Strength of the Nation
Pre-approved automatic waiver of 5-year requirement:• Must be enrolled in FEHB on the first day of the
buyout period (October 1 of the current FY) and• Retire during the buyout period; and• Receive a buyout (VSIP); or• Take early optional retirement (VERA) as a result of
early-out authority; or• Take a DSR based on involuntary separation
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FEHB IN RETIREMENT
CONTINUATION INTO RETIREMENT
America’s Army: The Strength of the Nation
Cost of FEHB is the same for retirees and active employees except that premiums are paid on a monthly basis vs. bi-weekly
Same Open Season and qualifying life event (QLE) opportunities as active employees
Same FEHB plans available to retirees as active employees Once you cancel FEHB coverage in retirement, you can
never re-enroll Retirement is not a qualifying life event for changing your
FEHB enrollment At age 65, you must enroll in Medicare and it becomes your
primary and your FEHB plan becomes your secondary provider
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FEHB IN RETIREMENT
America’s Army: The Strength of the Nation
Retirees can suspend FEHB for TRICARE or Medicare (if enrolled in Medicare Advantage health plan) and return to FEHB coverage during Open Season or immediately upon involuntarily losing non-FEHB coverage.
Retirees do NOT participate in Premium Conversion.
Your spouse is eligible to continue FEHB coverage after your death only if you have Self and Family coverage and you elect to provide a survivor benefit at retirement.
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FEHB IN RETIREMENT
America’s Army: The Strength of the Nation
Part A (Hospitalization) – No Cost• Enrollment is automatic at age 65
Part B (Medical) – Monthly premium based on yearly adjusted gross income
Part D (Drug) – Monthly premium
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MEDICARE
America’s Army: The Strength of the Nation
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FEGLI IN RETIREMENT
Additional Information: www.opm.gov/insure/life OPM Tel: 1-888-767-6738
America’s Army: The Strength of the Nation
• Retire on an immediate annuity• Insured on date of retirement• Enrolled in each Option and Multiple for the 5
years of service prior to retirement OR since your FIRST opportunity to enroll
• Election Form: SF2818 - Continuation of Life Insurance Coverage – form requires 4 signatures
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FEGLI IN RETIREMENT CONTINUATION INTO RETIREMENT:
America’s Army: The Strength of the Nation
Basic Insurance Amount (BIA) is based on your final annual salary rounded up, plus $2,000. Ex: $51,400 = $52,000 + $2,000 = Amt of Basic Ins $54,000
Options Before age 65 After age 65
75% reduction BIA x .3250 (per $1,000) NO COST
ex: $17.55 per month
50% reduction BIA x .9250 (per $1,000) BIA x .6000 (per $1,000) ex: $49.95 per month ex: $32.40 per month
NO reduction BIA x 2.1550 (per $1,000) BIA x 1.8300 (per $1,000) ex: $116.37 per month ex: $98.82 per month
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FEGLI IN RETIREMENT BASIC LIFE OPTIONS:
Coverage reduces 2% per mth for 37.5 mths until it reaches a final value of $13,500
Coverage reduces 1% per mth for 50 mths until it reaches a final value of $27,000
America’s Army: The Strength of the Nation
OPTION A - Standard = $10,000
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FEGLI IN RETIREMENTOPTION A - STANDARD COVERAGE:
At age 65 coverage reduces by 2% per month for 37.5 months until it reaches $2,500.
Age Group Monthly CostUnder 35 $0.6535 thru 39 $0.8740 thru 44 $1.3045 thru 49 $1.9550 thru 54 $3.0355 thru 59 $5.8560 thru 64 $13.0065 & above NO COST
America’s Army: The Strength of the Nation
OPTION B – Ex: Annual Salary $51,400 1x Multiple elected = $52,000 Age Group Mthly Cost @ $1000 Mthly Cost
Under 35 $0.065 $3.3835 thru 39 $0.087 $4.5240 thru 44 $0.130 $6.7645 thru 49 $0.195 $10.1450 thru 54 $0.303 $15.7655 thru 59 $0.607 $31.5660 thru 64 $1.300 $67.6065 thru 69 $1.560 $81.1270 thru 74 $2.600 $135.2075 thru 79 $3.900 $202.8080 & Above $5.200 $270.40
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FEGLI IN RETIREMENTOPTION B – ADDITIONAL COVERAGE
(1 – 5 MULTIPLES OF PAY):
FULL Reduction: At age 65, no cost & coverage reduces by 2% per month for50 months at which time coverage will end.NO Reduction: Coverage and premium will continue.
America’s Army: The Strength of the Nation
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OPTION C - Spouse = $5,000 (1x Multiple) / Each Child = $2,500 (1x Multiple)
FEGLI IN RETIREMENTOPTION C - FAMILY COVERAGE
(1 - 5 MULTIPLES):
FULL Reduction: At age 65, no cost & coverage reduces by 2% per month for 50 months at which time coverage will end.NO Reduction: Coverage and premium will continue.
Age Group Mthly Cost per Multiple Mthly Cost (1x)
Under 35 $0.59 $0.5935 thru 39 $0.74 $0.7440 thru 44 $1.00 $1.0045 thru 49 $1.30 $1.3050 thru 54 $1.95 $1.9555 thru 59 $3.14 $3.1460 thru 64 $5.63 $5.6365 thru 69 $6.50 $6.5070 thru 74 $7.37 $7.3775 thru 79 $9.75 $9.7580 & above $13.00 $13.00
America’s Army: The Strength of the Nation
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TSP & RETIREMENT
Thrift Savings Planhttp://www.tsp.gov
Telephone: 1-877-968-3778
TDD: 1-877-847-4385
Mailing Address:
P.O. Box 385021
Birmingham, AL 35238
Monday through Friday
7:00 a.m. – 9:00 p.m. ET
ThriftSavings
Plan
America’s Army: The Strength of the Nation
Tax deferred retirement savings & investment plan Provides the opportunity to increase your retirement
income You must be in a position subject to retirement
deductions to contribute TSP offers two approaches to investing your
money:• L Funds are “Lifecycle” Funds invested in a mix of
stocks, bonds, & Government securities• Individual Funds are the G, F, C, S, I funds
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THRIFT SAVINGS PLAN (TSP)
America’s Army: The Strength of the Nation
Government Securities Investment (G) Fund • Invested in short-term U.S. Treasury securities• Interest income without risk of loss of principal• Payment of principal & interest is guaranteed• Low risk• 10-year annual return: 4.92%
Fixed Income Index Investment (F) Fund • Government, corporate & mortgage-backed bonds• Invested in bond index fund that tracks Barclays
Capital U.S. Aggregate bond index• Offers opportunity to earn rates of return that exceed
money market fund rates over the long term• Low to moderate risk• 10-year annual return: 5.69%
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TSP FUNDS
America’s Army: The Strength of the Nation
Common Stock Index Investment (C) Fund• Stocks of large & medium-sized US companies• Invested in stock index fund that tracks the Standard & Poors
(S&P) 500 stock index• Potential to earn high investment returns over the long term• Moderate risk• 10-year annual return: -1.40%
Small Capitalization Stock Index (S) Fund• Stocks of small to medium-sized US companies• Invested in stock index fund that tracks Dow Jones Wilshire 4500
Completion (DJW 4500) index• Earn potentially higher investment returns over the long term than
in the C Fund• Moderate to high risk (more than the C Fund)• 10-year annual return: 1.74%
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TSP FUNDS
America’s Army: The Strength of the Nation
International Stock Index Investment (I) Fund• International stocks of 21 developed countries• Invested in stock index fund that tracks the Morgan Stanley Capital
International EAFE (Europe, Australasia, Far East) index• Potential to earn high investment returns over the long term• Moderate to high risk• 10-year annual return: 0.84%
Lifecycle (L) Fund• Each L Fund is invested in the individual TSP funds (G, F, C, S, I),
using investment allocations that are tailored to different time horizons
• Objective is to provide the highest possible rate of return for the amount of risk taken
• Subject to the risks of the individual funds• Expected returns will be approximately equal to weighted average
of the G, F, C, S, I Funds’ returns
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TSP FUNDS
America’s Army: The Strength of the Nation
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LIFECYCLE FUNDS
FUND
TIME HORIZON
GROWTH RISK
L Income Today and the near future
Low Low
L 2020 2015 through 2024 Moderate Moderate
L 2030 2025 through 2034 Moderate to High
High
L 2040 2035 through 2044 High High
L 2050 2045 or later High High
America’s Army: The Strength of the Nation
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LIFECYCLE FUNDSFUND ALLOCATIONS
L FUND
G Fund
F Fund
C Fund
S Fund
I Fund
L Income
74%
6%
12%
3%
5%
L 2020
35.80%
7.45%
30.15%
9.80%
16.80%
L 2030
22.05%
8.45%
35.80%
13.80%
19.90%
L 2040
11.05%
9.45%
39.80%
16.90%
22.80%
L 2050
3.50%
7%
43.8%
18.9%
26.8%
America’s Army: The Strength of the Nation
TSP PROJECTION
Amount of Annual TSP Contribution
# of Years to Contribute
Rate of Return (based on 10-year
summary of annual returns for
F Fund) Projected TSP Account Balance
$7,500 10 6% $136,749
$7,500 20 6% $385,551
$7,500 30 6% $838,221
$5,000 30 6% $628,666
$2,500 30 6% $419,110
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TSP IN RETIREMENT
WITHDRAWAL OPTIONS: • Automatic cashout (accounts less than $200)• Leave money in the TSP• Age-based withdrawal• Full Withdrawal
• Single payment• Monthly payments• Life annuity
• Mixed Withdrawal• Must begin to receive TSP funds by April 1 of the year
following the year you are 70 ½
HOW TO APPLY: TSP-70 FORM - Withdrawal
Request America’s Army: The Strength of the Nation
You are eligible to make-up missed TSP contributions if you meet all of the following conditions:
You were placed in LWOP-US or separated from Federal civilian service to perform military service.
You were released from military service on or after 08-02-1990.
You were reemployed in or restored to a position covered by CSRS or FERS.
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TSP MAKE-UP CONTRIBUTIONS
America’s Army: The Strength of the Nation
If you contributed to TSP during your period of military service, the amount you can make-up will be reduced by the amount you contributed to your military TSP account. Your make-up contributions will not count against the current year's IRS limit.
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TSP MAKE-UP CONTRIBUTIONS
America’s Army: The Strength of the Nation
You will receive agency matching contributions as you make-up your employee contributions. Also, if you contributed to your military TSP account, you are entitled to agency matching contributions to be made to your civilian TSP account, based on your contributions from your military basic pay received while on active duty. You will receive agency automatic 1% contributions for the entire period you were on military duty, regardless of whether or not you make-up employee contributions.
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TSP MAKE-UP CONTRIBUTIONS
America’s Army: The Strength of the Nation
You will need to submit the Employee Request for TSP Make-up Contributions, your DD 214(s) or military orders, and your Military Leave and Earnings Statements (LESs) to verify your TSP contributions while on active duty. Provide your request form and documentation to your Local Human Resource Office.
For more information on TSPM, please see the TSP Fact Sheet, TSP Benefits that Apply to Members of the Military Who Return to Federal Civilian Service, on the TSP website.
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TSP MAKE-UP CONTRIBUTIONS
America’s Army: The Strength of the Nation
Open to TSP participants age 50 or older Not eligible for agency automatic 1% matching
contribution Limited to $5,500 for year 2011
• Must be contributing IRS yearly maximum, $16,500 for 2011
• Must make new election each year
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TSP CATCH-UP CONTRIBUTIONS
Elections made via EBIS athttps://www.abc.army.mil orIVRS at 1-877-276-9287
America’s Army: The Strength of the Nation
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LONG TERM CAREINSURANCE (LTCI)
Want to talk with a Certified Long Term Care Insurance Consultant?
Tel: 1-800-LTC-FEDS (1-800-582-3337) TTY: 1-800-843-3557
Mon - Fri 8 a.m. - 8 p.m. ET Sat 9 a.m. - 5 p.m. ET
Closed Sun and Federal holidays
http://www.ltcfeds.com
Offered by: John HancockMetLife
America’s Army: The Strength of the Nation
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FLEXIBLE SPENDINGACCOUNTS (FSA)
To receive more information regarding FSAs, pleasecontact a SHPS counselor.Retirees are not eligible to continue FSA.
Email: [email protected] Telephone: 1-877-FSAFEDS (1-877-372-3337)
TTY: 1-800-952-0450
• Mon-Fri 9 a.m. – 9 p.m. ET• Closed Weekends and Holidays• http://www.fsafeds.com
America’s Army: The Strength of the Nation
Can enroll in dental, vision, or both Self Only Self & One Self &
Family
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FEDERAL EMPLOYEES DENTAL & VISION INSURANCE PROGRAM (FEDVIP)
Dental BenefitsDiagnosticPreventativeEmergency CareRestorativeOral/Maxillofacial SurgeryEndodonticsPeriodonticsProsthodonticsOrthodontics
Vision BenefitsDiagnostic ServicesPreventative ServicesEyewear
• Glasses• Contacts
ENROLL AT
https://www.benefeds.com
1-877-888-3337
TTY 1-877-889-5680
America’s Army: The Strength of the Nation
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DESIGNATION OF BENEFICIARY
Beneficiary Forms: SF 1152 (Unpaid Comp) SF 2823 (FEGLI) SF 3102 (FERS) TSP 3 (TSP)
Order of Precedence: Court Order Designation of
Beneficiary Widow or Widower Children (and/or
descendants of deceased children)
Parents Executor or
Administrator of Estate Next of Kin
America’s Army: The Strength of the Nation
Request your retirement estimate no more than 5 years prior to your retirement eligibility date
ABC-C will compute one retirement estimate per year Retirement estimate includes:
• Verification of military & civilian service documented in your Official Personnel Folder (OPF)
• Calculation of amount of civilian deposit and/or redeposit owed
• Impact of unpaid civilian deposit/redeposit & military deposit on your retirement annuity
• Confirmation of your current FEHB & FEGLI enrollment & your eligibility to continue these benefits into retirement
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RETIREMENT ESTIMATE
America’s Army: The Strength of the Nation
5 years prior to retirement eligibility:• Contact the ABC-C for retirement estimate &
information• Call ABC-C with questions on retirement estimate
180 days prior to retirement:• Download forms from ABC-C website • Call ABC-C for help with the retirement forms
120 days prior to retirement:• Mail retirement forms to ABC-C• Maintain personal copy
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ABC-C RETIREMENTPROCEDURES & PROCESS
America’s Army: The Strength of the Nation
ABC-C receives your retirement package:• Reviews retirement package• Sends letter acknowledging receipt and requests
missing forms/documents• Requests OPF 90-120 days out
30-60 days prior to retirement:• Retirement package assigned to counselor
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ABC-C RETIREMENTPROCEDURES & PROCESS
America’s Army: The Strength of the Nation
ABC-C retirement counselor:
• Verifies required forms and documents• Processes retirement package• Provides final retirement counseling• Retirement package is forwarded to DFAS
Good retirement address & contact information
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ABC-C RETIREMENTPROCEDURES & PROCESS
America’s Army: The Strength of the Nation
2 - 4 weeks after retirement:• Final paycheck is received• Lump sum annual leave is paid• VSIP payments if applicable
6 - 8 weeks after retirement:• Receive 1st payment (may be INTERIM)• Receive letter from OPM with CSA number
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ABC-C RETIREMENTPROCEDURES & PROCESS
Office of Personnel Management Retirement Operations CenterP.O. Box 45 Boyers, PA 16017
www.opm.gov email: [email protected] Tel: 1-888-767-6738
Social Security Administration www.ssa.gov www.medicare.gov Tel: 1-800-772-1213
IRS Publication 721 www.irs.gov Tel: 1-800-Tax-Form
America’s Army: The Strength of the Nation
CONTACT THE ABC-C
Toll Free 1-877-276-9287 (TDD 1-877-276-9833)
Counselors are available from 6 am – 6 pm CT
Website: https://www.abc.army.mil
Mailing Address: 303 Marshall Avenue, Ft. Riley, KS 66442-5004
Fax: 785-240-6153
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FOR ADDITIONAL RETIREMENT INFORMATION
America’s Army: The Strength of the Nation
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Army Benefits Center – Civilian1-877-276-9287
Select:1= Army Civilian 2=DCMA Civilian 3=National Guard 4=Non-Appropriated Fund or Uniformed Service Member
Select: 1= Customer Service Survey 2= Access Benefits and Entitlements Select: 1= Current or Separated Civilian Employee 2= Retiree or Surviving Spouse 3= Seeking Temporary Continuation of Coverage (FEHB TCC)
To access Benefits and Entitlements: 1= Enter SSN and PIN 1= Change your PIN 2= Continue 2= Forgot PIN Current Duty Phone 1= Correct 2= Change
Main Menu: 0= Benefits Counselor 1= FEHB 2= Retirement 3= TSP 4= FEGLI 6= Fax Document 9= Exit System
Menu Information Available after Main Menu Option Selected
1 = FEHB: 1= General Information 2= Personal Information 3= New Employee Election 4= Change from Self and Family to Self Only (without changing plan) 5= Open Season Election 6= Cancel FEHB 7= Non-Open Season Change 8= Fax of latest SF 2809 0= Counselor 9= Previous Menu
2 = Retirement: 1= General Information 2= Personal Information 3= Retirement Estimate 0= Counselor 9= Previous Menu
3 = TSP: 1= Personal Information 2= TSP Election 4= Stop Contributions 5= TSP Catch-Up Election 0= Counselor 9= Previous Menu
4 = FEGLI: 1= General Information 2= Personal Information 3= New Employee Election 4= Non-Open Season Election 5= Open Season Election 6= Fax of Open Season Election 0= Counselor 9= Previous Menu
6 = Faxed Documents: 1= Request a Document 2= Index of Documents 9= Previous Menu
Initial Options
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